H.G.INFRA ENGINEERING 2022-23 Annual Report Analysis

Fri, 31 Mar

H.G.INFRA ENGINEERING has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

H.G.INFRA ENGINEERING Income Statement Analysis

• Operating income during the year rose 23.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY23 as against 18.9% in FY22.
• Depreciation charges increased by 13.3% and finance costs increased by 30.6% YoY, respectively.
• Other income grew by 131.9% YoY.
• Net profit for the year grew by 29.8% YoY.
• Net profit margins during the year grew from 10.1% in FY22 to 10.7% in FY23.

H.G.INFRA ENGINEERING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,514	46,220	23.2%
Other income	Rs m	79	182	131.9%
Total Revenues	Rs m	37,593	46,402	23.4%
Gross profit	Rs m	7,096	8,965	26.3%
Depreciation	Rs m	851	964	13.3%
Interest	Rs m	1,177	1,538	30.6%
Profit before tax	Rs m	5,146	6,646	29.1%
Tax	Rs m	1,346	1,714	27.3%
Profit after tax	Rs m	3,800	4,932	29.8%
Gross profit margin	%	18.9	19.4
Effective tax rate	%	26.2	25.8
Net profit margin	%	10.1	10.7

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

H.G.INFRA ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 16 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 66.6%.
• Long-term debt stood at Rs 15 billion as compared to Rs 10 billion during FY22, a growth of 53.4%.
• Current assets rose 50% and stood at Rs 27 billion, while fixed assets rose 50% and stood at Rs 24 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 51 billion as against Rs 34 billion during FY22, thereby witnessing a growth of 50%.

H.G.INFRA ENGINEERING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,360	19,219	33.8
Current Liabilities	Rs m	9,700	16,163	66.6
Long-term Debt	Rs m	9,660	14,820	53.4
Total Liabilities	Rs m	33,922	50,793	49.7
Current assets	Rs m	17,886	26,742	49.5
Fixed Assets	Rs m	16,026	24,041	50.0
Total Assets	Rs m	33,922	50,793	49.7

H.G.INFRA ENGINEERING Cash Flow Statement Analysis

• H.G.INFRA ENGINEERING's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 475.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 6 billion, an improvement of 92% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 442 million from the Rs -949 million net cash flows seen during FY22.

H.G.INFRA ENGINEERING Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-3,218	-1,393	-
Cash Flow from Investing Activities	Rs m	-656	-3,780	-
Cash Flow from Financing Activities	Rs m	2,925	5,615	92.0%
Net Cash Flow	Rs m	-949	442	-

Current Valuations for H.G.INFRA ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.7, an improvement from the EPS of Rs 58.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 781.4, stands at 10.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	575.6	709.2
TTM Earnings per share	Rs	58.3	75.7
Diluted earnings per share	Rs	58.3	75.7
Price to Cash Flow	x	7.8	7.4
TTM P/E ratio	x	9.5	10.3
Price / Book Value ratio	x	2.5	2.3
Market Cap	Rs m	35,303	43,389
Dividends per share (Unadj.)	Rs	1.0	1.3

Ratio Analysis for H.G.INFRA ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 1.8x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 5.3x during FY23, from 5.4x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 25.7% during FY23, from 26.5% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 24.0% during FY23, from 26.3% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 12.7% during FY23, from 14.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	1.7
Debtors’ Days	Days	62	58
Interest coverage	x	5.4	5.3
Debt to equity ratio	x	0.7	0.8
Return on assets	%	14.7	12.7
Return on equity	%	26.5	25.7
Return on capital employed	%	26.3	24.0

To see how H.G.INFRA ENGINEERING has performed over the last 5 years, please visit here.

H.G.INFRA ENGINEERING Share Price Performance

Over the last one year, H.G.INFRA ENGINEERING share price has moved up from Rs 556.6 to Rs 781.4, registering a gain of Rs 224.8 or around 40.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for H.G.INFRA ENGINEERING and quarterly results for H.G.INFRA ENGINEERING)